Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Industry, Sector and Symbol
Stock Exchange NASDAQ
Industry Investors, not elsewhere classified
Sub-IndustryAsset Management & Custody Banks
SectorFinance
SymbolNASDAQ:ARCC
CUSIP04010L10
Phone212-750-7300
Debt
Debt-to-Equity Ratio0.71
Current Ratio0.99
Quick Ratio0.99
Price-To-Earnings
Trailing P/E Ratio12.19
Forward P/E Ratio10.62
P/E Growth3.56
Sales & Book Value
Annual Sales$1.16 billion
Price / Sales6.20
Cash Flow$1.4403 per share
Price / Cash11.72
Book Value$16.65 per share
Price / Book1.01
Profitability
EPS (Most Recent Fiscal Year)$1.39
Net Income$667 million
Net Margins65.81%
Return on Equity8.80%
Return on Assets5.05%
Miscellaneous
EmployeesN/A
Outstanding Shares426,300,000
Market Cap$7,225.75
Ares Capital (NASDAQ:ARCC) Frequently Asked Questions
What is Ares Capital's stock symbol?
Ares Capital trades on the NASDAQ under the ticker symbol "ARCC."
How often does Ares Capital pay dividends? What is the dividend yield for Ares Capital?
Ares Capital announced a quarterly dividend on Wednesday, May 2nd. Stockholders of record on Friday, June 15th will be given a dividend of $0.38 per share on Friday, June 29th. This represents a $1.52 annualized dividend and a dividend yield of 9.00%. The ex-dividend date of this dividend is Thursday, June 14th. View Ares Capital's Dividend History.
How will Ares Capital's stock buyback program work?
Ares Capital declared that its Board of Directors has authorized a share buyback plan on Friday, April 7th 2017, which authorizes the company to buyback $300,000,000.00 in outstanding shares, according to EventVestor. This buyback authorization authorizes the company to reacquire shares of its stock through open market purchases. Stock buyback plans are usually an indication that the company's board of directors believes its stock is undervalued.
How were Ares Capital's earnings last quarter?
Ares Capital Co. (NASDAQ:ARCC) posted its earnings results on Wednesday, May, 2nd. The investment management company reported $0.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.02. The investment management company earned $317 million during the quarter, compared to analyst estimates of $309.81 million. Ares Capital had a return on equity of 8.80% and a net margin of 65.81%. The business's revenue was up 15.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.28 EPS. View Ares Capital's Earnings History.
When is Ares Capital's next earnings date?
What price target have analysts set for ARCC?
11 Wall Street analysts have issued 12 month price objectives for Ares Capital's stock. Their forecasts range from $15.00 to $19.50. On average, they expect Ares Capital's share price to reach $17.9545 in the next year. This suggests a possible upside of 6.4% from the stock's current price. View Analyst Ratings for Ares Capital.
What is the consensus analysts' recommendation for Ares Capital?
11 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Ares Capital in the last year. There are currently 1 hold rating and 10 buy ratings for the stock, resulting in a consensus recommendation of "Buy."
What are Wall Street analysts saying about Ares Capital stock?
Here are some recent quotes from research analysts about Ares Capital stock:
- 1. National Securities analysts commented, "• We had previously stated in our 1Q18 earnings note that Ares received Board approval to lower asset coverage. The company only discussed that they were continuing to evaluate options.
• We thus continue to expect a leverage passage increase sooner rather than later. Ares discussed in a press release last month on 4/2/18 that they intend to recommend moving ahead the recommendation to utilize the flexibility the new BDC leverage limitations provides.
• We think that given ARCC’s UMM focus along with utilization of the SDLP via expansion of the 30% basket under such a scenario make perfect sense for Ares.
• The ability to source and purchase significant amounts of low yielding, safer UMM credits that might only currently work in the JV but could potentially augment the balance sheet investments and would be simple for Ares as it has the ability to purchase substantial amounts of these loans and it does not deviate from the area of Ares’ primary focus currently in terms of large UMM borrowers. The sponsor relationships the company has also speak to the potential for Ares to originate more loans.
• We think that given the size of Ares, consistency of returns, and shareholder friendly actions carried out by the company to this point that it is also possible that they lower management fees, although we do not model that into our assumptions.
• Reduced fees would also portend to management getting votes to expedite when the increased leverage is available as we think cutting fees concomitant with increasing leverage so that more of the benefits flow through to shareholders would induce shareholders to vote yes. Being the largest public BDC currently, Ares also has significant institutional shareholder ownership relative to the sector who would more readily understand these benefits, in our opinion.
• As such we are making no changes to our estimates at this time given we think of all companies, the potential to go above 1:1 would work best for Areas given increasing the 30% basket and thus SDLP further and already doing larger, UMM loans hereupon what is currently passed on for price could make the ROE work." (5/15/2018)
- 2. According to Zacks Investment Research, "ARES CAPITAL CORPORATION is a specialty finance company that is a closed-end, non-diversified management investment company. Ares Capital Corporation has elected to be regulated as a business development company under the Investment Company Act of 1940. Its investment objective is to generate both current income and capital appreciation through debt and equity investments. Ares Capital Corporation invests primarily in first and second lien senior loans and mezzanine debt, which in some cases includes an equity component, and, to a lesser extent, in equity investments in private U.S. middle market companies. " (5/3/2018)
Are investors shorting Ares Capital?
Ares Capital saw a decline in short interest in June. As of June 15th, there was short interest totalling 2,771,900 shares, a decline of 24.7% from the May 31st total of 3,680,502 shares. Based on an average daily volume of 2,127,514 shares, the days-to-cover ratio is presently 1.3 days. Approximately 0.7% of the shares of the company are sold short. View Ares Capital's Current Options Chain.
Who are some of Ares Capital's key competitors?
Some companies that are related to Ares Capital include Prospect Capital (PSEC), TPG Specialty Lending (TSLX), Golub Capital BDC (GBDC), Tian Ge Interactiv (TGRVF), New Mountain Finance (NMFC), Pennantpark Floating Rate Capital (PFLT), PennantPark Investment (PNNT), Gladstone Investment (GAIN), Capital Southwest (CSWC), Arlington Asset Investment (AI), THL Credit (TCRD), Safeguard Scientifics (SFE), Oaktree Strategic Income (OCSI), TRIPLEPOINT VEN/COM (TPVG) and Stellus Capital Investment (SCM).
Who are Ares Capital's key executives?
Ares Capital's management team includes the folowing people:
- Mr. Michael J. Arougheti, Exec. VP & Co-Chairman (Age 46)
- Mr. Bennett Rosenthal, Co-Founder and Co-Chairman (Age 55)
- Mr. Robert Kipp DeVeer III, Director & CEO (Age 45)
- Mr. Robert L. Rosen, Director (Age 72)
- Mr. Mitchell S. Goldstein CPA, CPA, Co-Pres (Age 51)
Has Ares Capital been receiving favorable news coverage?
News stories about ARCC stock have been trending somewhat positive recently, Accern Sentiment Analysis reports. The research group rates the sentiment of press coverage by analyzing more than 20 million blog and news sources in real-time. Accern ranks coverage of public companies on a scale of negative one to one, with scores nearest to one being the most favorable. Ares Capital earned a coverage optimism score of 0.06 on Accern's scale. They also assigned press coverage about the investment management company an impact score of 46.78 out of 100, meaning that recent press coverage is somewhat unlikely to have an impact on the stock's share price in the near future.
Who are Ares Capital's major shareholders?
Ares Capital's stock is owned by a variety of of retail and institutional investors. Top institutional shareholders include Confluence Investment Management LLC (1.23%), Bank of Montreal Can (0.74%), LGT Capital Partners LTD. (0.31%), Mckinley Capital Management LLC Delaware (0.14%), Gilbert & Cook Inc. (0.10%) and DnB Asset Management AS (0.03%). Company insiders that own Ares Capital stock include Michael J Arougheti, Mitchell S Goldstein, Penelope F Roll and Steve Bartlett. View Institutional Ownership Trends for Ares Capital.
Which institutional investors are selling Ares Capital stock?
ARCC stock was sold by a variety of institutional investors in the last quarter, including Confluence Investment Management LLC, DAVENPORT & Co LLC, Bank of Montreal Can, Private Trust Co. NA, Monument Capital Management, Creative Planning and Nwam LLC. View Insider Buying and Selling for Ares Capital.
Which institutional investors are buying Ares Capital stock?
ARCC stock was acquired by a variety of institutional investors in the last quarter, including Whittier Trust Co. of Nevada Inc., Whittier Trust Co., Mckinley Capital Management LLC Delaware, Gilbert & Cook Inc., Alpha Windward LLC, LGT Capital Partners LTD., Cornerstone Wealth Management LLC and Bristol Advisors LLC. Company insiders that have bought Ares Capital stock in the last two years include Michael J Arougheti, Mitchell S Goldstein, Penelope F Roll and Steve Bartlett. View Insider Buying and Selling for Ares Capital.
How do I buy shares of Ares Capital?
Shares of ARCC can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Scottrade, Fidelity and Charles Schwab.
What is Ares Capital's stock price today?
One share of ARCC stock can currently be purchased for approximately $16.88.
How big of a company is Ares Capital?
Ares Capital has a market capitalization of $7.23 billion and generates $1.16 billion in revenue each year. The investment management company earns $667 million in net income (profit) each year or $1.39 on an earnings per share basis.
How can I contact Ares Capital?
Ares Capital's mailing address is 245 PARK AVENUE 44TH FLOOR, NEW YORK NY, 10167. The investment management company can be reached via phone at 212-750-7300 or via email at [email protected]
MarketBeat Community Rating for Ares Capital (NASDAQ ARCC)
MarketBeat's community ratings are surveys of what our community members think about Ares Capital and other stocks. Vote "Outperform" if you believe ARCC will outperform the S&P 500 over the long term. Vote "Underperform" if you believe ARCC will underperform the S&P 500 over the long term. You may vote once every thirty days.
